Does plant role moderate relationship between internal manufacturing network integration, external supply chain integration, operational performance in manufacturing network?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yang Cheng ◽  
Sami Farooq ◽  
Muhammad Shakeel Sadiq Jajja

PurposeThis paper aims to investigate the moderating effects of the role a plant plays in a manufacturing network on the relationships between its level of integration with other plants in the same manufacturing network (referred as “internal manufacturing network integration” in this paper), its interactions with suppliers/customers (referred as “external supply chain integration” in this paper), and its operational performance.Design/methodology/approachThis paper is based on the data from the sixth version of International Manufacturing Strategy Survey (IMSS VI). Specifically, this paper uses a subset of the IMSS VI data set from the 606 plants that identified themselves as one of the plants in a manufacturing network.FindingsThe results demonstrate plant role has a moderating effect on the relationship between internal manufacturing network integration and external supply chain integration, but not on the relationship between external supply chain integration and operational performance. Our research also highlights that plant role moderates the mediating effect of external supply chain integration on the relationship between internal manufacturing network integration and operational performance. More importantly, it indicates that if a plant wants to significantly increase its operational performance, it will have to strengthen its linkages with supply chain partners, no matter which role it plays in manufacturing network.Originality/valueThis paper supplements the existing research by developing further understandings on the relationship between internal manufacturing network integration, external supply chain integration and operational performance. Specifically, it examines the influence of plant role on such relationship and reveals the essence about in what context (in terms of plant characteristics) internal manufacturing network integration influences the operational performance of a plant in a manufacturing network through external supply chain integration.

2016 ◽  
Vol 21 (5) ◽  
pp. 550-568 ◽  
Author(s):  
Yang Cheng ◽  
Atanu Chaudhuri ◽  
Sami Farooq

Purpose The purpose of this paper is to investigate the relationships at the level of plant in a manufacturing network, labelled as networked plant in the paper, between inter-plant coordination and operational performance, supply chain integration (SCI) and operational performance and inter-plant coordination and SCI. Design/methodology/approach This paper is developed based on the data obtained from the sixth version of International Manufacturing Strategy Survey (IMSS VI). Specifically, this paper uses a subset of the IMSS VI data set from the 606 plants that identified themselves as one of the plants in a manufacturing network. Findings This paper finds that external integration is significantly related to operational performance of networked plant, whereas internal integration is not. As an enabler for external integration, the influence of internal integration on operational performance of networked plant is mediated by external integration. This paper also provides evidence to the purported positive impact of internal integration on inter-plant coordination, as well as the positive impact of inter-plant coordination on external integration. It further suggests that inter-plant coordination can influence operational performance of networked plant through external integration and also mediate the relationship from internal integration to performance through external integration. Originality/value This paper contributes to the SCI literature and extends the understanding of the impact of SCI on the operational performance by selecting networked plant as a unit of analysis. Besides, this paper distinguishes inter-plant coordination from SCI and investigates the relationship between inter-plant coordination, SCI, and operational performance for the first time.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anurodhsingh Khanuja ◽  
Rajesh Kumar Jain

PurposeSupply chain integration (SCI) and flexibility (SCF) are recognised as crucial business practices and capability in the global competitive market. However, limited research has paid attention to study the relationship between SCI, SCF and their impact on supply chain performance (SCP). Therefore, the purpose of this paper is to establish a relationship between integration, flexibility and performance.Design/methodology/approachThe structural equation modelling technique was used to analyse the 187 data collected from Indian organisations through the survey methodology.FindingsFindings indicate that external integration contributes significantly to realise SCF and SCP. Sourcing and logistics flexibility also help to improve the SCP. The mediation analysis showed that the association of customer and supplier integration with SCP is partially and fully mediated by logistics flexibility, respectively. This study suggests that integration influences the SCP when the firm has a strong association with downstream partners and enough capability for logistics flexibility.Research limitations/implicationsThe study has collected cross-sectional data to analyse the relationship between SCI, SCF and SCP. However, as integration requires an effort of the years, longitudinal data and industry-specific studies may provide comprehensive views to validate the results of this study.Originality/valueBuilding on relational view theory and dynamic capability theory, the study has proposed the SCP assessment framework based on the relationship between SCI and SCF.


2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan

Purpose It remains unclear how environmental scanning (ES) can generate firm performance through supply chain management (SCM) practices. The purpose of this paper is to investigate the effects of ES on operational performance through supply chain integration (SCI) and supply chain responsiveness (SCR). Design/methodology/approach The scanning–interpretation–action–performance (SIAP) model and organization information processing theory (OIPT) are used to explain the ES–SCI–SCR–performance (S–I–A–P) relationships, which were tested by structural equation modeling of survey data of 329 manufacturing firms in China. Findings The results indicate that ES has a significant positive effect on SCI and SCR. SCI is significantly and positively related to SCR. SCR partially mediates the relationship between ES and operational performance, and fully mediates the relationship between SCI and operational performance. Practical implications Supply chain managers should collaborate with senior executives to obtain signals from ES activities, as input for building SCI and SCR and use SCI as a joint interpretation mechanism of ES signals for developing SCR to reap operational advantages in the rapidly changing business environment. Originality/value Strategic management academics and practitioners have explicitly emphasized the importance of ES in developing strategic plans but are unsure about the role of SCM in creating operational advantages through ES. Using the SIAP model, this study theorizes and demonstrates how SCI and SCR transform signals from ES into operational performance. In doing so, a more precise application of OIPT is explicated in the supply chain context.


2019 ◽  
Vol 25 (7) ◽  
pp. 1696-1715
Author(s):  
Michael Kwamega ◽  
Dongmei Li ◽  
Eugene Abrokwah

Purpose The purpose of this paper is to investigate the mediating effect of information sharing (IS) on the link between supply chain integration (SCI) practices (internal, customer and supplier) and internal process performance (IPP) by using selected agribusiness firms from an emerging economy, Ghana. Design/methodology/approach To determine the effect of IS on the nexus between SCI practices and IPP, a research framework was developed and tested using data amassed from 156 agribusiness firms for the study. The data set was assessed and hypotheses were tested using structural equation modelling. Findings The outcomes revealed that both INI and CI positively and significantly influenced IS. However, the results disclosed that SI has no significant positive effect on IS among the Ghanaian agribusiness firms. The findings of the study further discovered that IS fully mediates the relationship between INI, CI and IPP, whereas SI has a direct interaction with IPP. Originality/value This study contributes to the existing supply chain management research by empirically authenticating IS as the mediator between SCI practices and IPP. From the viewpoint of a developing economy, this paper identifies the significant connection that exists between SCI practices, IS and IPP. The outcomes recommend that IS is a core driving facilitator to reinforce the correlation between SCI practices and IPP.


2017 ◽  
Vol 117 (8) ◽  
pp. 1650-1668 ◽  
Author(s):  
Mengying Feng ◽  
Wantao Yu ◽  
Roberto Chavez ◽  
John Mangan ◽  
Xumei Zhang

Purpose The purpose of this paper is to extend prior supply chain research by empirically exploring the relationship among guanxi, supply chain integration (SCI), and operational performance. More specifically, this study investigates the mediating role of SCI. Design/methodology/approach Ordinary least square regression is used to analyze survey data collected from 126 automobile manufacturers in China. Findings The results reveal a significant positive relationship between guanxi and SCI, and that SCI is significantly and positively related to operational performance. The authors’ findings further suggest that guanxi indirectly affects operational performance through SCI. Practical implications The empirical findings imply that it is vital for managers to recognize the important mediating role of dynamic SCI capabilities. Originality/value As a fundamental Chinese cultural norm, guanxi can be critical in a supply chain context. Although previous research has identified the importance of guanxi and SCI in improving firm performance, far less attention was given to the study of the mediating effect of SCI on the guanxi-performance relationship. This study thus fulfills the research gap by providing an initial empirical examination of the mediating role of SCI in China’s automotive industry.


2019 ◽  
Vol 12 (2) ◽  
pp. 254 ◽  
Author(s):  
Mohamed Errassafi ◽  
Hassan Abbar ◽  
Zahra Benabbou

Purpose: This paper aims to explain the direct effect of supply chain integration on operational performance of manufacturing companies and the mediating effect of internal integration on the relationship between external integration and operational performance.Design/methodology/approach: From an organizational capabilities perspective we consider internal integration as a set of intra-organizational capabilities and customer integration and supplier integration as a set of inter-organizational capabilities. In the basis of a sample of 75 Moroccan manufacturing companies, we used PLS – Structural Equation Modeling to study the direct effect of customer integration, internal integration and supplier integration on operational performance of manufacturers and to analyze the mediating effect of internal integration. Findings: The results show that customer integration, internal integration and supplier integration are all positively and significantly related to operational performance of the manufacturer and internal integration mediates relationship between costumer integration and operational performance but not relationship between supplier integration and operational performance.     Research limitations/implications: This study focuses on a set of best practices for integrating flows and business processes that industrial companies need to implement in order to create value for final consumer and show how to use internal integration practices to benefit more from external integration.Originality/value: The result of this study extends the developing body of literature on supply chain integration by analyzing the effect of interaction between internal and external integration on the operational performance towards an organizational capabilities perspective in a specific Moroccan industrial context.


2017 ◽  
Vol 28 (2) ◽  
pp. 444-463 ◽  
Author(s):  
Kum Fai Yuen ◽  
Vinh Van Thai

Purpose An implicit assumption of current supply chain integration (SCI) research is that the results obtained from product supply chains can be directly extrapolated to service supply chains. The purpose of this paper is to question this assumption of equivalence by proposing that the effects of internal integration (II) and external integration (EI) on operational performance (OP) are contingent on whether a firm operates in a product and service supply chain. Design/methodology/approach Drawing on the contingency theory, a model that specifies and contrasts the interrelationships between II, EI, and OP in product and service supply chains was proposed. Subsequently, measures were developed and survey data were collected from 138 product and 174 service companies in Singapore. The data were then analysed using multi-sampling analysis. Findings The effects of II and EI on OP varied significantly between product and service supply chains. In addition, the relationship between II and OP was found to be partially mediated by EI in product supply chains whereas a fully mediated relationship was observed in service supply chains. Research limitations/implications Within the context of SCI, different mediation patterns exist in product and service supply chains. The results suggest adopting a contingency rather than a universalistic approach in the management of firms’ internal and external integrative capabilities to maximise OP. Specifically, managers should adjust their II and EI efforts to achieve congruency with the type of supply chain they serve. Originality/value This paper tests the assumption of equivalence and extends the current scope of SCI contingency research by cross-examining the effects of II and EI on OP in both product and service supply chains simultaneously.


2016 ◽  
Vol 36 (12) ◽  
pp. 1741-1768 ◽  
Author(s):  
Ruggero Golini ◽  
Patricia Deflorin ◽  
Maike Scherrer

Purpose The purpose of this paper is to provide guidance in setting the level of autonomy (i.e. parental control) of plants in a network to enhance operational performance. In particular, the effect of autonomy on performance is analysed directly and indirectly through internal manufacturing network integration (MNI) and external supply chain integration (SCI) as two dimensions of manufacturing network embeddedness. Design/methodology/approach The analysis is based on data from 441 manufacturing plants in 17 countries. Data were gathered during the Sixth International Manufacturing Strategy Survey. Five main constructs were obtained after carrying out a confirmatory factor analysis: plant autonomy, internal MNI, external SCI, efficiency and effectiveness. Direct and indirect relationships among the constructs are tested through a structural equation model. Findings Higher levels of autonomy correlate with higher effectiveness and similar efficiency. However, lower autonomy leads to higher levels of manufacturing network and SCI, which enhance performance. Although not statistically significant, the analysis of the total effects reveals a mildly positive effect of autonomy on effectiveness and negative effect on efficiency, which requires further investigation. Research limitations/implications Further research could include headquarters’ perspectives or additional determinants (e.g. business strategy objectives). Practical implications Managers should set autonomy levels strategically: higher for effectiveness and lower for efficiency. However, lower autonomy can also strengthen internal MNI and external SCI, thus improving operational performance. Originality/value The concept of manufacturing network embeddedness highlights the importance of considering external supply chain and internal MNI in the same framework, as both dimensions can affect operational performance.


2019 ◽  
Vol 25 (1) ◽  
pp. 61-76 ◽  
Author(s):  
Wenjin Hu ◽  
Yongyi Shou ◽  
Mingu Kang ◽  
Youngwon Park

Purpose The purpose of this study is to investigate the contingencies of supply chain risk management (SCRM) in manufacturing multinational corporations (MNCs) by exploring the moderating role of international asset dispersion in the performance effect of SCRM, as well as the counteraction effect of supply chain integration (SCI). Design/methodology/approach Multi-country survey data from a sample of 378 responses collected by the sixth round International Manufacturing Strategy Survey were analyzed. Hierarchical regression analysis was conducted to test the proposed hypotheses. Findings The results demonstrate that SCRM improves the operational effectiveness of manufacturing MNCs but this performance effect is attenuated by international asset dispersion. Nevertheless, external integration can counteract the negative effect of international asset dispersion and ensure the efficacy of SCRM practices. Practical implications The results of this study provide suggestions for supply chain managers of manufacturing MNCs to better conduct SCRM practices under the condition of dispersed international assets. Besides, supply chain managers can leverage external integration to ensure the efficacy of SCRM practices. Originality/value Although there are plenty of studies on the relationship between SCRM and operational performance, prior findings are inconsistent. This study sheds light on the SCRM-operational performance relationship by considering how a manufacturing MNC’s international asset dispersion can influence the efficacy of SCRM practices and how SCI can attenuate the negative effect of international asset dispersion.


2016 ◽  
Vol 23 (6) ◽  
pp. 1445-1471 ◽  
Author(s):  
Veera Pandiyan Kaliani Sundram ◽  
VGR Chandran ◽  
Muhammad Awais Bhatti

Purpose – The purpose of this paper is to employ a newly developed framework to examine the complex relationship between different components of supply chain practices, supply chain integration (SCI) and supply chain performance (SCP) in the Malaysian electronics sector. Design/methodology/approach – This study utilizes survey data of 156 electronics firms in Malaysia and tested the research framework and hypotheses. In addition to the traditional approach of Barron and Kenny (1986), the Sobel test as well as a bootstrapping approach, which is deemed for small sample size, is used to formally test the indirect effects of SCI in the model. Findings – SCI has fully and partially mediated the relationship between supply chain management practices (SCMPs) and SCP. SCI fully mediates the relationship between SCP and three of the SCMPs, namely, information quality, agreed vision and goals and postponement strategies. The relationship of supply strategic partnership, customer relation management, information sharing with SCP were partially mediated by SCI. Risk and reward sharing is found to be non-significant. These insights allow managers to effectively utilize the different components of SCMPs for SCI and performance. Practical implications – For supply chain practitioners, the results of the study can be useful in integrating SCMPs and SCI on improving SCP. Practitioners should take into account the mediating effect of SCI in designing their supply chain management approach to production. Originality/value – To the authors’ best knowledge, this paper is one of the first to address the mediating effect of SCI between SCMPs and overall performance of the supply chain.


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